TOPIC 1 - ECONOMIC DEVELOPMENT: A GLOBAL PERSPECTIVE

ABSOLUTE POVERTY

A situation of being unable to meet the minimum levels of income, food, clothing, health care, shelter, and other essentials.

SUBSISTENCE ECONOMY

• An economy in which production is mainly for personal consumption

• The standard of living yields little more than basic necessities of life—food, shelter, and clothing.

DEVELOPMENT

The process of improving the quality of all human lives and capabilities.

THE NATURE OF DEVELOPMENT ECONOMICS

Greater scope than traditional neoclassical economics and political economy.

TRADITIONAL NEOCLASSICAL ECONOMICS

an approach to economics that emphasizes utility, profit maximization, market efficiency, and determination of equilibrium.

POLITICAL ECONOMY

Combines economics and politics by studying economic activity in its political context.

DEVELOPMENT ECONOMICS

The study of how economies are transformed from stagnation to growth and from low income to high-income status, and overcome problems of absolute poverty.

DEVELOPING COUNTRIES

characterized by low levels of living and other development deficits.

VALUES

Principles, standards, or qualities that a society or groups within it considers worthwhile or desirable.

ATTITUDES

The states of mind or feelings of an individual, group, or society regarding issues such as material gain, hard work, saving for the future, and sharing wealth.

INSTITUTIONS

Accepted norms and rules that guide human and economic behavior; include both formal (laws, governments) and informal (traditions, customs).

SOCIAL SYSTEMS

Interdependent relationships between economic and non-economic factors

GROSS DOMESTIC PRODUCT (GDP)

Total value of all goods and services produced within a country’s borders, by residents and nonresidents.

GROSS NATIONAL INCOME

GDP plus income earned by residents abroad, minus income earned domestically by foreigners

Income per capita

GNI divided by total population (average income per person).

Functionings

What people actually do or achieve with the resources they have (e.g., being healthy, getting education, having a job).

Capabilities

The freedom or opportunities people have to achieve those functionings, given their personal situation and access to resources.

SUSTENANCE

the ability to meet basic needs.

SELF-ESTEEM

The feeling of worthiness that a society enjoys when its social, political, and economic systems and institutions promote human values such as respect, dignity, integrity, and self-determination.

FREEDOM FROM SERVITUDE

To be able to choose.

THE CENTRAL ROLE OF WOMEN

To make the biggest impact on development, societies must empower and invest in women.

UN SUSTAINABLE DEVELOPMENT GOALS

universal set of 17 interconnected goals adopted by all UN member states in 2015 as part of the 2030 Agenda for Sustainable Development.